A Professional Services Christmas Carol

Transcription

1 A Professional Services Christmas Carol An allegorical tale on the current state of the professional services sector with our predictions and actions for years yet to come +44 (0) LinkedIn: Openside

2 1 Introduction It is around this time every year that Firms, including us, usually publish their state of the union thought-pieces with their perspectives on the industry along with their predictions for the year to come. Taking a lead from Seth Godin, this year we have decided to try something a little bit different, perhaps even a bit remarkable. We have decided to publish our reflections on the state of the professional services industry, our predictions for the coming year and actions for professional services leaders in the form of a parody of the well-known allegorical story A Christmas Carol. We realise this style won t be for everyone but we hope that for those who do read it, our story provides a different way of looking at the professional services sector that ultimately challenges the status quo in your Firm and leads to real behaviour change. Our story is based on conversations we have had with clients in the past year, latest research and other expert commentary on professional services. You can find these references at the end of the document. Clearly our story exaggerates for effect and our characters and Firm are entirely fictional! However, the themes covered in our story are very real issues facing professional services Firms billable hours, utilisation targets, disruption, technological change, client needs and expectations, workplace culture, younger generations, flexible working, artificial intelligence, professional development, rethinking client value and will play a vital role in shaping the future of the sector. Our Professional Services Christmas Carol is broken into five distinct staves or chapters: Stave One: The Chairman s Ghost We introduce our story s chief protagonist and the Firm s Managing Partner, Scrooge. We learn about the culture of his professional services Firm and meet our story s long-suffering antagonists: The Junior Associate, The Client and the Practice Manager. Stave Two: The Ghost of Christmas Past Our Managing Partner Scrooge revisits his junior years and reflects on how hard it was for him in the traditional professional services culture. Readers should reflect on whether a traditional professional services culture and the focus making Partner is still compatible with younger generations in their Firm? Stave Three: The Ghost of Christmas Present We look at the key issues at the forefront of professional services clients. We further examine the culture of professional services Firms and the effect this might have on junior employees and we highlight some of the issues Firms must face up to regarding technological change in the years to come. Stave Four: The Ghost of Christmas Yet to Come Rather depressingly, we hypothesise about what will happen to professional services Firms who choose not to innovate, listen to their client s changing needs or revisit their working practices. Stave Five: The End of It We highlight a list of actions for professional services leaders to consider for the coming years. Our actions are grouped into three main themes: Internal strategy (Digital, Technology and AI), meeting changing client needs and professional services workplace culture.

3 2 STAVE ONE: THE CHAIRMAN S GHOST Our story begins on a cold Christmas Eve in the offices of Scrooge and Marley, a traditional professional services Firm that has been found in the heart of The City for nearly 200 years. At his large oak desk, busily checking performance metrics sits the Firm s Managing Partner, Benjamin Scrooge, a distant relative of the Firm s founder, Ebenezer. This afternoon, Scrooge is even more irate than usual because from high up in his office, he can see people leaving their offices early to do some last-minute Christmas shopping. None of these people work for Scrooge. No one is leaving early from Scrooge s Firm. Flexi-time?! thinks Scrooge indignantly, Humbug! Scrooge has worked at the Firm for all his working life. He joined the Firm as a Graduate and worked his way up through the ranks until he finally became Managing Partner of the Firm when his long-term colleague, Marley was invited to retire. There are three things that Scrooge values in life above anything else utlilisation targets, ensuring his profit share and maintaining tradition - and his staff members know it! Directly opposite Scrooge s desk (on the other side of the Perspex glass) sits Rob Cratchit a Junior Associate in the Firm. Rob has also worked at the Firm for most of his career. When he joined, he was ambitious and eager to learn. Now he s worn down, stressed, unshaven and with bags under his eyes. Strict rules, long hours, a process driven approach and a lack of career progression have killed off most of his ambition and spirit. Rob picks up his phone and cautiously dials Scrooge s extension Please can I finish a few hours early? pleads Rob. I still need to get a Christmas present for Tim and I wanted to surprise my wife by getting home a few hours early. Scrooge s sniped reply is all too predictable: You are not leaving this office a minute early I don t care if it s Christmas Eve if you don't hit your billable hours target this month you can say goodbye to your bonus and any chance of a promotion in the next five years! What good is Christmas, that it should shut down business?"

4 3 Suddenly, a ruddy-faced woman bursts into the office, offering holiday greetings and an exclamatory Merry Christmas. The woman is Winifred, CEO of one of Scrooge s most important clients. We re having a few Christmas drinks in our office after work and wondered if you wanted to join us Ben? I d like to introduce you to a few of my fellow Directors and some of our top clients. Scrooge declines the invitation. Doesn't Winifred know that he has a 150% utilisation rate to maintain? Winifred isn t surprised. She thanks Rob Cratchit for his excellent work through the year and leaves. Soon after a portly gentleman knocks on Scrooge s glass door to ask for a donation. The man is the Firm s Practice Manager. Along with all the non-fee earners in the Firm Marketing, HR, IT - Scrooge sees the Practice Manager as a functionary, purely there to do his bidding. We really need to invest in our IT and technology Mr Scrooge, otherwise we ll start to fall even further behind other Firms. Artificial Intelligence is really starting to play a large role in our industry and we have to start seriously looking at robotics. Scrooge replies angrily that the only charity he is willing to support is the one that ensures his profit share at the end of the year! The Practice Manager leaves frustrated and empty handed. That night, after leaving the office at a suitably late hour, Scrooge makes his way home through the fog-blanketed streets, passing the late-night revellers celebrating Christmas Eve. When he gets home, a strange thing happens. A ghostly image appears in his door knocker it is the face of the Firm s old Chairman, Jonathan Marley?! Scrooge rushes inside, locks his door and sits down to eat his microwave dinner. Suddenly, a ghostly figure floats through the closed door. It is Jonathan Marley, transparent and bound in chains. Scrooge shouts in disbelief and refuses to believe it could be his old colleague. It must be food poisoning perhaps I didn't blitz this Chicken Korma for long enough in the microwave? The apparition starts to murmur, In life I was your Firm s Chairman, Jonathan Marley. He tells Scrooge that he has spent 7 years roaming the earth as a punishment for the way he ran the Firm in life - Marley had in fact only roamed the earth for 5 years but was basing his calculation on total hours billed. I am here tonight to warn you, that you have yet a chance and hope of escaping my fate. Marley tells Scrooge that over the course of the night he will be visited by three spirits The Ghosts of Christmas Past, Present and Future. With that, he drifts out of the window. Scrooge stumbles to his bed and falls instantly asleep.

5 4 STAVE TWO: THE FIRST OF THREE SPIRITS - THE GHOST OF CHRISTMAS PAST Ben Scrooge wakes up at midnight. At 1am, the curtains of his bed blow open by a strange figure. Who, and what are you? Scrooge demands. I am the Ghost of Christmas Past. Long Past? inquires Scrooge. No. Your past. With that, the ghost transports Scrooge to the former offices of Scrooge and Marley. Scrooge sees a vision of himself as a hard-working, highly motivated Junior Associate in the Firm. He sees himself working long into the night. He remembers how the consistently long hours took their toll on him. He remembers the pressure to meet his utilisation targets and the sacrifices he made to his life outside of work. He remembers the motivation and ambition he had and how it slowly drained away as he was forced to fit into the culture of the Firm. But I had no choice to work that hard Scrooge tells the spectre. It was the only way I was going to make Partner With that the ghost transports Scrooge to another Christmas of the past: a merry dinner party thrown by one of his friends. Do They Know It s Christmas? is playing on the radio and the guests are drinking Bucks fizz, Mateus Rosé and Campari. They are sharing a cheese fondue. Scrooge sees himself in conversation with a pretty woman with a large perm, leg warmers, white stilettos and shoulder pads. Her name is Belle. She tells him she is ending their relationship because she can t be with someone she sees so rarely. I promise it will all change I just need to make Partner begs Scrooge. When I do, I ll remember what it was like as a Junior and I won t expect the same of others. But Belle tells Scrooge it is too late and leaves to join some of their friends who are trying to do the moonwalk. As if to spite Scrooge further, Last Christmas by Wham is the next tune to start playing. The older Scrooge can no longer bear it. He begs the Ghost of Christmas Past to take him back to his home. The ghost disappears and Scrooge finds himself in his bedroom. Again, he falls asleep immediately.

6 5 STAVE THREE: THE SECOND OF THREE SPIRITS - THE GHOST OF CHRISTMAS PRESENT At 1am, the church clock wakes Scrooge from his sleep mid-snore. Scrooge notices a bright light streaming in from an adjacent room. He wanders in and discovers the second spirit waiting for him. The figure, a majestic giant clad in green robes, sits atop a throne made of a gourmet feast. In a booming voice, the spirit announces himself as the Ghost of Christmas Present and orders Scrooge to touch his robes. As he does, the room vanishes instantly and Scrooge appears in the middle of the party to which he had earlier been invited by his client Winifred. Scrooge notices that many of his other clients are at the drinks reception - wishing each other a Merry Christmas! Scrooge overhears Winifred talking to some of her senior colleagues: No, Scrooge couldn't make it. Apparently, he s too busy. To be honest, I think it s time we looked for another professional services advisor in the new year Really? asks one of Winifred s colleagues (Scrooge recognises him as the FD of Winifred s company), That s a bit risky no one ever got fired for hiring Scrooge and Marley! That used to be true, but simply relying on their brand and reputation isn t enough for me anymore. Their brand name can t be a substitute for results. There s plenty of smaller, non-traditional boutique Firms who are just as capable. I ve heard they employ alumni of larger Firms and use better technology. I think they ll also be more cost effective. Why do we need to use one Firm to provide all of our services anyway we re more than capable of finding a different service provider for each project. I think it s time Scrooge put himself in our shoes. His Firm are so difficult to work with and they just seem to be stuck in the past. Yes, they re a well-known brand but that will not cut it anymore. I honestly think that they still believe that price is an indication of quality. I also really dislike the way Scrooge continues to charge us by the hour. I d have thought it was obvious to him by now I m interested in outputs and results, not how long it s taken them to do the work! I m fed up with him allocating people to our project based on who he thinks we can afford and not who can most effectively solve the problem! What s more, the faster they solve the problem for us, the less Scrooge earns so where s the incentive for him to be efficient! Also, I hate calling them for advice because I ll just be charged for the time. To be honest, he would probably have billed us for his time at this party!!!

7 6 I m sure we can do better. Merry Christmas everybody thanks for all your efforts this year. Scrooge is mortified. Winifred s company have been a client of his for many years. Next the phantom takes Scrooge to the home of Junior Associate, Rob Cratchit. It s still Christmas Eve and Rob is having a heated discussion with Mrs Cratchit. They are both madly wrapping presents. Tiny Tim misses his dad. I thought you said you d be able to leave a bit earlier today Rob it s Christmas Eve! shouts Mrs Cratchit exasperatedly. I couldn't help it I had to submit my time sheet, argues Rob, How am I supposed to get my bonus if I don't meet my targets? I m sorry I keep letting you down. It s going to change in the new year. I ve decided that I m going to start looking for a job somewhere else. I was told that it was worth putting in all these hours to make Partner but to be honest, the sacrifice isn t worth it. Their culture isn t for me. I want to work for a Firm with remote working and flexible hours, that invests in new technology to help its workforce, that gives me the chance to do some professional development and develop skills I m going to need in my future career. I want to be rewarded for my effectiveness and results - not just how many hours I ve worked! There are plenty of new Firms looking to recruit people like me who will let me work remotely and give me the flexibility and freedom I want. Even some of our larger clients are looking to recruit alumni of traditional Firms into their internal strategy groups and management functions With that, the spirit tells Scrooge that if Mr Cratchit cannot find another role, given the current conditions in the Cratchit household, Mrs Cratchit will likely ensure there is an empty chair at next year s Christmas dinner Rob s. Finally, Scrooge and the ghost find themselves back in the desolate office of Scrooge and Marley. It s dark, apart from a light shining from the Firm s server room. Inside, Scrooge finds the Firm s Practice Manager, desperately trying to keep the Firm s legacy IT systems running over the Christmas break and cursing Scrooge under his breath. Scrooge inquires if nothing can be done to help the poor man. Mockingly, the ghost quotes Scrooge's earlier retort, "The only charity I m willing to support is the one that ensures my profit share at the end of the year! As the clock strikes midnight, the spirit disappears and Scrooge eyes a hooded phantom coming toward him

8 7 STAVE FOUR: THE LAST OF THE SPIRITS - THE GHOST OF CHRISTMAS YET TO COME The menacing spectre wearing a black hooded robe approaches Scrooge who kneels before him and asks: I am in the presence of the Ghost of Christmas Yet to Come? The phantom doesn't respond but instead points onward with his hand. Squirming in terror, Scrooge pleads with the ghost to share his lesson, hopeful that he can avoid the fate of Jonathan Marley. The phantom takes Scrooge to the heart of The City. Some businessmen climb out of a driverless car. Scrooge recognises one of the men as the FD from Winifred s business and overhears their conversation: It s funny to think I was a client of theirs once... It was inevitable really... I m surprised they didn't go out of business sooner. They just wouldn't adapt or innovate. The Managing Partner thought they were immune to disruption. They couldn't see that our needs were evolving. Ultimately, we realised that we were paying too much for a service that didn't add enough value. I suppose all their clients realised they wanted greater speed, responsiveness and control too. Then Scrooge recognises the other man. It s Rob Cratchit. I can t believe I stayed at the Firm for so long. The culture had suited the Partners well for many years but they wouldn't accept that the younger generation were not willing to subscribe to it. Thankfully, Winifred always appreciated the effort I put into your Firm and offered me a job as an internal advisor. Good riddance I say Scrooge begs to know the identity of the wound-up Firm, exasperated in his attempts to understand the lesson of the silent ghost. Suddenly, the spirit points Scrooge towards a modern building in The City which has been obscured by newly erected scaffolding. Behind the scaffolding Scrooge finds a single sheet of paper stuck to the inside of the glass door. He recoils in disgust at what is written: Formerly the offices of SCROOGE AND MARLEY. For all enquiries, please contact the liquidator. In horror, Scrooge begs the spirit to help him alter these events. He promises to live by the lessons of Past, Present and Future. He begs for mercy and promises that he will change. As Scrooge continues to cry out, the phantom s robe collapses and Scrooge discovers he has returned to the safety of his own bed.

9 8 STAVE FIVE: THE END OF IT Filled with relief, Scrooge rushes to the window and calls down to a confused teenager buried deep in his phone: What s today? You what? returns the boy, taking out an earphone. What s today, my fine fellow? says Scrooge. Today?! replied the boy. Err, Christmas Day! Scrooge, can t contain himself and starts shouting Merry Christmas at the top of his lungs. Scrooge immediately phones his Practice Manager who is somewhat startled and concerned to receive a call from his Managing Partner on Christmas Day (although not too surprised based on the Firm s existing workplace culture). Scrooge apologises profusely for his previous reticence and promises the Practice Manager that he will give him the budget he needs to improve all the Firm s IT and technology in the coming year. He will embrace a digital strategy, invest in artificial intelligence and start to seriously consider robotics because that is what clients will expect. Indeed, it is what the competition are already doing. Above all, Scrooge promises to stop treating non-fee earners with scepticism but instead treat them as vital members of the Firm. He ends the call by wishing the baffled Practice Manager a very Merry Christmas! Genuinely excited about this chance for redemption, Scrooge finds a Christmas present he had been given by a supplier, re-writes the attached note and decides, despite the heavy snow, to take it around to Winifred, CEO of one of his most important client organisations. Winifred, rather taken aback, opens her front door to Scrooge and gratefully accepts the gift. Scrooge promises that his Firm will change. He acknowledges there is a lot more competition in the market and that his Firm is not immune to this competition. He says he will make it his firm s priority to have a much better understanding of what value really means for his clients and will then make sure his Firm are much better at delivering this value for clients. He tells her he plans to start by making it easier for clients to work with his Firm. He will invest in technology to streamline processes and improve the client experience. He ll make it much easier to work with different areas of his practice. His Firm won t continue to just offer a one-size-fits-all model but will find a way to deliver high-value, complex projects alongside more commoditised low-cost services if that is what the client wants.

10 9 Finally, Scrooge promises to stop billing by the hour and instead look at introducing value-based pricing. He says he can see now that the billable hour puts all the transaction risk onto the client and that it misaligns the interests of his Firm and his clients by focusing on inputs rather than results. Above all, Scrooge will make sure his Firm and his people are able to match the service offered by any other Firm because, as Winifred will appreciate: It s not what you do that makes the difference in professional services, but how you do it. Scrooge radiates such profound delight that Winifred finds it hard to hide her shock. They share the drink that Scrooge missed out on the night before and Scrooge returns home. The next day, Boxing Day, Scrooge gets to the office early and isn t surprised to see Rob Cratchit arrive a few minutes later as he has fallen behind on his utilisation targets. Scrooge pretends to be cross with Rob for missing his targets before suddenly announcing his intention to pay him his bonus anyway, because the quality of his work and his excellent relationships with clients are far more important than his busyness. Rob is stunned when Scrooge tells him how much he values his efforts on behalf of the Firm. He promises that he will try to better integrate junior staff members, like Rob, into the Firm. He will invest heavily in Rob s professional development and help him develop the skills he will need for a successful career in professional services in the 21 st Century. He promises that he will find a way to introduce more flexible working and the chance to work remotely. Above all, Scrooge tells Rob, I do not expect junior staff members like you to fit the culture, instead the culture needs to adapt to fit you. Now go home to your family and I ll see you in the new year. Merry Christmas! Rob is stunned and Mrs Cratchit is too when her husband walks through the door to join his family who are eating cold turkey sandwiches. Tiny Tim removes his gaze from his new Peppa Pig DVD for just a few seconds to ask his dad what he is doing home so early. Rob replies that he has Scrooge to thank for this surprise and that the future is looking much brighter for them all. Well then, says Tim, showing eloquence far beyond his years: God Bless Us, Every One! Best wishes to you from everyone at The Openside Group

11 10 References 2018 Legal Technology Predictions bluelock: An Obituary for the Billable Hour Tim Williams: Consulting on the Cusp of Disruption Clayton M. Christensen, Dina Wang, Derek van Bever: Harvard Business Review, October 2013: Consulting Industry: Stop measuring Utilization! Its putting us out of business Guillermo Salazar: Eight things to look out for in 2018 Source Global Research: Mission Impossible? Managing Performance within the Partner Group The Openside Group: Define your metrics or they will define you The Openside Group: Partner Contribution and Reward Survey 2017 by Performance Leader, Managing Partners Forum (MPF) Contribution-Reward-Survey-2017.pdf Who s in charge? Exploring Leadership Dynamics in Professional Service Firms Laura Empson: and Internal Consulting Group (ICG): data/assets/pdf_file/0004/181228/empson-exploring-leadership-dynamicsin-professional-service-firms.pdf